Debt Crisis of United States of America 2011 Explained in a Simplified Way

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meet Uncle Sam he has a lot of bills to
pay almost four trillion dollars worth every
year Uncle Sam’s income is a little over
two trillion dollars per year to make up the difference the deficit he
does what most Americans do he borrows money, When uncle sam picks up a loan he calls it a bond, Bonds can be held by
banks investors or even foreign governments
uncle sam has to promise to pay interest on these bonds just as you do on any
loan you take out ever think about paying your mortgage
with your credit card? that’s exactly what Uncle Sam does he
takes out new loans new bonds so that he can make payments
on the old ones all those loans and especially over
interest adds up right now uncle sam ows about 14 trillion dollars to put that in
perspective $14 trillion is about the same as the national GDP
the total value of all the goods and services produced by the American economy in an
entire year it’s such a huge amount of money the local same starting to run out of
people to borrow from and he’s having trouble just paying the interest on his loans the
obvious solution would be to either cut spending
or increase taxes but if it cut spending the people that
he’s spending money on would complain that they don’t have
money to spend and that he was hurting the economy if he tried to raise taxes enough to
close this gap not only would people
definitely have less money to spend he probably have riots on a sense so Uncle Sam chooses the easy way to make
money just make it he calls up the Federal Reserve which is
our central bank and like magic dollars are created and
deposited in banks all around america the problem is that
the more something there is the less it’s worth same goes for the US
dollar the more dollars there are the less each
one will buy that’s why commodities like gasoline food and gold become more expensive
when uncle Sam does his money making magic the commodities aren’t really worth more
your money is just worth less that’s called inflation remember the foreign
governments that lent money to uncle sam when they
lent money to the american government something interesting happened it made
the us look richer in their countries look poorer when a country looks poor compared to
america one dollar our money buys a lot of their money so they can
pay their workers only a few pennies a day with such low
labor costs they can sell their products in america
for lower prices than any American manufacturer can I’ll
the easiest way for american companies to compete is to move their factories overseas and
pay their workers a few pennies a day to you this
contributes to a recession Americans lose their jobs stop paying
taxes and start collecting government benefits
like Medicaid and unemployment this means that Uncle
Sam has even less income and even more expenses at the same time
the people who still have jobs are desperate to keep them so they tend
to do more work but not to get paid anymore when your
dollars are worth less and you’re not earning more them that’s
called stagflation and this is why Uncle Sam’s in a
catch-22 he can’t raise taxes or cut spending
without making the recession worse and he can’t have the Federal Reserve
create more money without making inflation worse for now he can keep borrowing money but since
you can’t even pay the interest on the loans he already has
it just makes his inevitable bankruptcy even worse whether it’s in two months
or two years the day will come when Uncle Sam can no
longer pay his bills when that happens the bank’s investors and foreign governments who are counting
on that money will be able to pay their bills you see just like Uncle Sam governments banks and corporations don’t actually
have much money mostly all they have is debt to each
other if one late in the day chain stops
paying defaults the whole thing falls apart if investors
can’t pay their bills corporations will be able to pay their
employees if banks can’t pay their bills you’ll be able to
take out a loan use a credit card or even withdraw your
savings if foreign governments can’t pay their
bills their own banks and corporations will have the same problems that’s
called a Global Economic Collapse it’s never happened before so nobody
really knows how bad it will be how long it will last
or even how will eventually get out a bit the
house of cards has already been built there’s no
painless way to dismantle it now all we can do is to educate each other
but what’s actually going on and to prepare for what may be very
extraordinary circumstances


  1. So when uncle Sam" print money it's all right. but when American people print money that considered a crime. So uncle Sam can make counterfeit money and won't be penalize or arrested.

  2. that's why I dont let people borrow. but damn so it's inevitable and the economy is going to crash. there will be war crime death and most will die just so we can start over. fuck

  3. I dont know why they would shoot jfk though. The reason the gold standard collapsed is because it wasnt possible to produce enough goods and services that would create enough value consistent to the amount of dollars being printed. So when americans were posting trade deficit after deficit. It doesnt mean you were ever going to get that gold. In the end. Foreigners never got that gold. america simply defaulted on its debts. And started a new system based on treasury bonds.

  4. Prepare for a very extraordinary circumstances?! Oh, you mean war?! Again?!! Like the tariff war with China?! Buts that's like just a slap on the wrist! How about looking for another scapegoat country and go for a real war?! Like what they did to Iraq? Remember when the stock market collapsed in 1929. People lost their money,jobs,homes and even their lives as others killed themselves. Part of the country even turned into a dust bowl. Until the U.S. found itself at war all because some idiot German Uboat sank one of their civilian ships. Then ,they realized war creates jobs and economic recovery. Then they realized they wanted more,so they joined the Korean war ,then comes,Vietnam. But ,came a blunder,they put into the White House a cheater named…….,Richard Nixon. This guy went to China,shook a chinese pig's hand and opened the gates of economic hell for America to fall back in again. So the whole world needs to prepare for this deadly cycle to start all over?

  5. Since charity begins at home, how can some country scratches the back of another country who is not willing to give a reciprocal scratch. USA think twice of its friends who are only burden, and should see who buy and sell to it as a friend e.g gulf countries and many moslem countries buy and sell from the USA.

  6. The problem with this model is that it doesn't seem to apply very well to the current situation. So far, we haven't seen too much trouble with inflation, because of hangovers from the crisis of 2008. I believe last quarter was the first time that the Fed raised interest rates – and that's been about 12 years. There doesn't seem to be very much upward pressure on prices, and I think that's mainly because real wages just haven't been increasing. They are now though, and unless the economy heats up enough to make up for lost tax revenue, the government is going to have to eventually raise taxes.

  7. Just default on the debt and no one will want to lend us anything lol. Then we can only spend what we tax. Boom problem solved.

  8. Why don't uncle Sam stick to his classic plan which is invading other countries in name of weapon of mass destruction and loot them which America has been doing for decades lol

  9. borrowing ? uhhh thats not what most people do, most people increase the money they bring in or decrease the money they spend to at least break even preferably gain..

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  11. Pure BS.

  12. Uncle Sam borrowed from overseas, and now prints money (imagine if citizens did that to pay their way) .Uncle Sam goes broke, kiddie trump confiscates foreign debt A. K. A build wall from Mexican debt. Make in America? soon people shall print in America, does this make America great again

  13. You cant pay iinterest at all. Its a scam perpetuated by the FED. For every 1 dollar borrowed, 1 dollar is created. Theres only enough money to pay the principal, never tge interest…lol

  14. So what's the best way to make money when/if it happens? Short the market? short the dollar? buy gold? Or just drink the koolaid and go long?

  15. So in other words uncle sam has fuct the whole the country just after his pedo looking mug has fuct the rest of us by not being able to pay his debts back

  16. WHAT UTTER BULLSHIT !!!!!!!!!!!
    1) Who creates the US dollar from nothing ? The US GOVT
    2) Who creates bonds from nothing ? The US GOVT
    Now exchange the 2 and people lose the plot and the end of the world is nigh.

    "Borrowing" is an asset swap to control liquidity, but because the ignorant masses don't understand liquidity then they are suckers for lies like the ones in the this video.
    This video is deliberately meant to scare monger you into accepting harsh cuts to your own services and conditions.

    All govt spending is new dollars on a spreadsheet.
    New dollars increase the amount of dollars in the banking reserves system called RESERVES.
    Increased reserves put downward pressure on interest rates as too many banks have too much money to lend to too few banks on the overnight money market.
    Bond issuance matches deficit spending in order to drain out those excess reserves.

    Govt spending = adding dollars to bank accounts
    "Borrowing" = drain dollars from bank accounts.

    If you enjoy being scared by the few then enjoy being ripped off by the few, its your choice …

  17. Tax Cuts for billionaires, low taxes on the Rich, no tax on corporations, and a long list of corporate welfare queens like the Department of Spending(defense) is why there is such a debt in the first place. But, sure, lets blame the American families trying to squeeze by on low incomes.. yeah thats the ticket. oh better yet, lets pin this on those pesky poor on welfare do nothings that.. HAVE NO MONEY.. but never the banks or wall street gangsters… no no no.. its them darn illegals.. yeah.. BUILD THAT WALL BUILD THAT WALL …. der takin our jobs.. which nobody wants… BUILD THAT WALL!

  18. The United States of America is the biggest ponzi scheme in the history of the world. Uncle Sam is a paranoid schizophrenic. Uncle Sam is a dirty rotten rat.

  19. imagine a world ware money didnt mean shit ware money was just a thought or an idea in someones head that they thought was a realy good idea but turned out to be a nightmare well the situation we are faceing in this economy began when the dolar bill was created befor the dolar bill tho we traded and hunted anything of value people understood people and there was a conection and a trust in a socity money is a tool but good or bad i think it depends money can destroy us or save us but latley there are ways to fix an economy and no one is willing to adress those ways

  20. THAT….is the reason Sadaam Hussein's country of IRAQ was invaded. IRAQ had absolutely NOTHING TO DO WITH 9-11 Saddam wanted to be paid in EUROS instead of DOLLARS. So, BUSH and BLAIR decided to use THEIR WEAPONS of MASS DECEPTION. Russias President PUTIN KICKED OUT ALL CENTRAL BANKERS and OLIGARCHS and THAT is why these Warhawk Bankers want a war with Russia.

  21. The video glosses over a lot of issues. The US is not running out of people/countries to buy bonds. The US is not having trouble paying interest on bonds and a lot of interest was saved when the US replaced incoming FICA income with bonds, in effect borrowing from themselves. Taxes must be raised to close the gap, but saying the gap must be closed all at once is absurd.

    Early in the Clinton administration, federal income taxes on the highest earners were raised only 3% and the debt minus FICA was eliminated by the end of his 8-year term. The problem is political will. The Republicans keep reducing taxes and the Democrats are afraid or would like us to believe they are powerless to stop it. Hell, the Democrats are now the fiscal hawks after the Republican majority added hundreds of billion to the deficit with their last tax "reform" bill. Reform means, like Reagan did, shifting the federal income tax burden from higher earners and corporations to middle and lower class workers.

    Both parties vote for an absurd amount of war spending, adding $80 billion recently without any substantive debate. We need to get the Pentagon to account for the $22 trillion that they spent and never told us how it was spent. Until then, get out of the 70 or so illegal wars we are involved in, pull back the troops, and lop about $300 billion off that wasteful military budget. Close most of the overseas military bases, bring troops back from Europe, withdraw from NATO, and use the excess manpower to work on needed infrastructure projects here in the US. Pass a financial transaction tax, bump the corporate tax back to %35, raise the tax on the highest earners to 35%, and add a temporary surtax of about 50% on all income (earned and unearned) over about $2 million/year. Get rid of the cap of FICA income so all taxpayers pay the same percentage of income towards Social Security.

    Do some of those things and will be in great shape within 10 years. Will any of it happen… not a chance. No political will.

  22. It will probably all end in an total war. The reasoning is also quite easy, if you own everything you owe nothing.

  23. I feel like 1960-1990 were the best years to work and live in America. I was born in 1987, so I have come of age just when
    the whole thing collapsed. Now we are legit debt slaves. But then again, most likely our generation will witness a new and even better system emerge on the other side of the tunnel. I am just scared how long it will take, and how messy the "purge" will be.

  24. Hmm…You describe exactly what is happening but miss out on one major entity, the Petro Dollar being controlled by the US Government, US Federal Reserve, US Military, World Bank, and IMF. Every thing that happens in our day to day lives ultimately returns to the Source, the United States. This is why the US won't collapse.

  25. Americans can nuke useless countries like Syria , Afghanistan and Iraq but not the banks , if they nuke the banks they don’t have to pay them back ????

  26. Why a global economic collapse should be something bad? I think that it will be a very good thing!! (Maybe not for USA and other rich countries)

  27. The Bankers pay politicians to make Wars, then they can lend money to the government… so the people pay their tax and the government uses this money to pay what it was borrowed from the banks, (3 times the initial amount). WAR IS A SIMPLE MECHANISM TO TRANSFER MONEY FROM THE PEOPLE TO THE BANKS! Interest is a CRIME and the bankers are WAR CRIMINALS!

  28. End the federal reserve and jail the money changers so these psychopaths that have hated us normal people for thousands of years can never build a debt based economy every again.. ah but i digress these elite own our nuclear arsenal and most high tech military so they would destroy the world with a nuclear winter b4 they let their system of control be taken away from them.

  29. The power is always with the people. If people in general knew how to limit their material greed, gluttony, etc, all would be just fine. People no longer fast but are fat and lazy, and want the next new high tech device; most people really don't NEED all the stuff they have or need to eat as much as they do. I can live on fifty dollars of food a week, regulate my heating costs by wearing more clothing, walk or ride a bus to work; it is possible, you can save tons of money if you are willing to cut back and suffer just a little.

  30. i'm lucky in that I work in a morgue , so I have been training myself to enjoy the taste of human flesh ! that will be the best way to survive one day .

  31. But if you buy real money like gold and supplies, with fiat now, you will be richer than in your dreams, when this hole show comes down

  32. It will never happen. Because the rich control the world. And its bad business for the so call currency to drop. There will be death, rape, race war, bussiness burned, cooperation burn down, homes, mansion raid, ect ect ect.

  33. This is dumb b***** we print our money, if the debt meant anything Trump wouldn't be able to give 2 trillion dollars in tax cuts to rich people it means absolutely nothing because we are the world's currency.HAHAHA HAHAHA

  34. One rhing these clips do not mention usa is the biggest creditor also do you know the real facts about who owes who, and how much? It might surprise you to know that America is owed a lot more money than it owes. Despite substantial debts that America owes to countries like China and Japan, they owe us money as well.

  35. United States of America has a very bad habit borrowing money from around the world and that's why American jobs move out side the United States of America so The wealthy American Company's can make a profit from the American Concumer buy products for cheap

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  37. What this short video does not analyse, is the wrong presumptions the economy is built on. May I suggest you all look for "Mariana Mazzucato" on youtube and listen to what she has to say. I would say: time to "trade in" Uncle Sam (and auntie Europe) for Mariana Mazzucato.

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